The Strong Dollar turnaround after a much better ISM Manufacturing data limiting the Cable’s gradual gains by smacking prices back below 1.27, after it reached 1.2750 during the first half of the day. During the early Asian session, positive comments at the end of the US President Donald Trump’s three-day UK visit pleased pair buyers. Moreover, uncertainty surrounding the US-Mexico and US-China trade relations weighed on the greenback. Traders now await signals of future monetary policy action by the Bank of England Governor Mark Carney when he speaks at the Institute of International Finance Spring Meeting, in Tokyo. With today's light macroeconomic calendar, traders will shift their attention to any political plays surrounding trade and Brexit.
The Cable bulls pushed price towards 1.2750 after it failed hard back below 1.27. However, price remains above the 50-day moving average, keeping the bullish momentum alive. The buyers need to regain 1.27 and test yesterday’s highs to stay in control. The bears on the other hand, will attempt to break below 1.2650 to regain control.
Support: 1.2650 / 1.26
Resistance: 1.27 / 1.2750